By : M.S.Yatnatti: Editor and Video Journalist Bengaluru : In Section-25 Company (Section 8 as per the new Companies Act, 2013) "not for profit organization” question of buying or selling control does not arise as no one is the owner in the organization . Rahul Gandhi is not the owner as director of Young Indian private limited or is not the owner having controlling shares and for that matter nobody is owner in Section-25 Company (Section 8 as per the new Companies Act, 2013) as it is "not for profit organization” and if someone want to walk out from the company he has to give it to a person of his choice free of cost .No one person or group of people can own a nonprofit organization. You don't see nonprofit shares traded on stock exchanges, and any equity in a nonprofit organization belongs to the organization itself, not to the board of directors or the staff. Nonprofit assets can be sold, but the proceeds of the sale must benefit the organization, not private parties or share holders .If you start a nonprofit and decide at some point in the future that you don't want to do it anymore, you have to walk away from it and leave the running of the organization to someone else. Or, if the time has come to close the doors for good, any assets the organization owns must be distributed to other nonprofits fulfilling a similar mission.This is not merger and acquisition between three commercial companies as alleged and question of commercial benefits does not arise. The deal is between three non-profit organizations and of civil nature.Giving of loan and waiver of laon is possible between any three non profit organizations. It cannot be termed as buying and selling of shares. Sonia Gandhi , Rahul Gandhicannot be accused of grabbing RS 1,600 CR property or RS 5,000 CR as young Indian is a "not for profit company” and Sonia Gandhi , Rahul Gandhi do not get any personnel gain in it and shares of "not for profit” are zero valued and no dividend is paid to any share holder of a section 25 or section 8 company which is a non-profit company that pays no dividend. In India non-profit organizations can be registered as trusts, societies, or a private limited company, under Section-25 company or (Section 8 as per the new Companies Act, 2013). Non-profit organizations are always self-governed by a 'board of trustees' or 'managing committee' comprising individuals who generally serve in a fiduciary capacity .In order to register such an organization, the basic requirements include A registration form, that is available without charge at the district registrar's office .A memorandum of association and rules and regulations of the organization.Consent letters of all the members of the managing committee. A minimum of seven members comprise a managing committee.Authority letter duly signed by all the members of the managing committee.Copy of rules and regulations certified to be a correct copy of original rules and regulations by at least three managing committee members.A declaration by the members of the managing committee that the funds of the society will be used only for the purpose of furthering the aims and objects of the society
Income tax department is legally barred from reopening Rahul Gandhi assessment for the year 2011-12 as a director in Young Indian private limited since 2010 as he does not get single NP income as it is a Section 8 Company under Companies Act 2013 (Section 25 Company under Companies Act 1956 .Let Gandhi advocates tell the court and get a stay on re-opening assessment for the year 2011-12 and get directions to Income Tax Department not to reopen the case. Young Indian private limited is a Section 8 Company under Companies Act 2013 (Section 25 Company under Companies Act 1956 and Non Discloser of your directorship in any "Not for Profit organization” to income Tax Department is nothing illegal as you does not get any dividend in profits to show any income and as there cannot be sale or purchase of share happens in "Not for Profit organization”. M&A it happens for free in "Not for Profit organization”. Commercial organization get dividend of profit and that need to be disclosed to income Tax Department and in "Not for Profitorganization” you does not get any dividend in profits so no discloser needed as there cannot be sale or purchase of share happens in "Not for Profitorganization”. In any eventuality shares are transferred "free” by any member in "Not for Profit organization”.It is pertinent to not the If someone found a non-profit corporation and then he don't want to be involved in it anymore, He cannotsell it to someone else? And Even if the assetssold, nobody can pay in exchange for control over the corporation?. If you want to leave and transfer control to someone else, you can do that by placing them on the board of directors and then resigning. You can't keep the assets of the company. One of the requirements of non-profit certification is that you agree to donate the assets of the non-profit to another non-profit corporation if you wind up the company. If the assets are sold, then the proceeds of the sale must be donated to another non-profit. There are various laws related to nonprofit organizations in India . A nonprofit organizations can be registered in India as a Society, under the Registrar of Societies or as a Trust, by making a Trust deed. A third option is registration as a section-8 Company under the Companies Act, 2013. Designation as a nonprofit does not mean that the organization does not intend to make a profit, but rather that the organization has no 'owners' and that the funds realized in the operation of the organization will not be used to benefit any owners.